Cash out refi or conventional loan?

[Jason Simon]

Hi all,

Would appreciate any advice as I'm relatively new to REI. I have two properties now, each with about 200k in equity. One is cash flow positive one is not. I'm thinking about a cash out refinancing on the property that is not cash flow positive to take out cash, lower my payment and break even, and use that cash to purchase a third house outright.

Alternatively, I could do a conventional loan on the third property (100k price, rents for $1200/month) and put 20% down. I’m sure there are other options as well. Any thoughts on purchasing a property in all cash vs a loan or are there better options?

Thanks BP community in advance.